We are all storytellers by nature.
Stories help us find meaning in the chaos of life, weaving together the threads of our experiences into a coherent narrative. Stories help us make sense of the world around us, whether they are about how our parents met, our early careers, or sharing stories from our business journey.
In the realm of business, particularly family businesses, storytelling holds significant importance. Your company narrative reflects your goals, values, and the actions you took to establish and grow your business.
Consider the stories circulating about your business today. These stories, whether they come from staff members or clients, provide a picture of your company and its development over time.
The most impactful stories about your family business usually center on turning points or openings that sparked change. These stories cover a range of historical moments, such as:
- Business developments: From periods of growth or decline to expanding into new markets, major sales, or integrating non-family members into leadership roles.
- Ownership transitions: Whether welcoming external investors, establishing shareholder agreements, or extending ownership stakes to non-family members.
- Family dynamics: Events like significant illnesses, relocations, separations, or divorces that impact both personal and professional spheres.
These stories take on much more importance when you consider the transition of your family business. Depending on who is poised to inherit the reins, the next phase of your business journey can either continue the existing narrative or chart an entirely new course.
If you’re thinking about changing your company, start by assessing the state of affairs as it stands. Evaluate your situation honestly and introspectively. Consider the following queries to get the assessment process going, if necessary:
- Are retirement plans on the horizon? When is the ideal retirement age for you?
- Irrespective of business circumstances, is your retirement financially viable? Do you possess sufficient savings to sustain yourself and your partner through retirement and potential medical expenses?
- How will you approach inheritance for your children? Will inheritances be distributed equally among them? If one child is actively involved in the business while another is not, how will this impact their stake in the company?
- Will business succession affect the division of your non-business assets? In what ways?
- Is the child involved in the business the most suitable candidate to assume leadership? Or is there another family member better suited to the role?
It is not a simple task to respond to these questions. Like every parent, you have a strong bond with each of your kids and work hard to make sure they’re happy. However, you also must protect the company as a stand-alone organization, especially for non-family workers who depend on it for stability.
Think back on the path that has led you to this point. Review the culture and corporate ethos that have been developed over years of commitment and development. After that, tell your company’s narrative again from a new, forward-thinking angle.
For comprehensive guidance on succession planning for your family business, reach out to us today.